[SOLVED]Can't make/open DDS

I've watched a couple of tutorials on this site and i wanted to make my own scope (got the idea from the stickie). But when i drag my .iwi on top of the iwi2dds i get a little log with a big "FAILED" in it. I do see a DDS on my desktop so when i open it in Photoshop (with the DDS plugin) it wants to make a new file. How do i properly convert the .iwi to a .dds or how am i supposed to open the dds?

(this is my first time messing around with the textures so explain it as simple as possible (if possible))

iwi2dds << that converts from .iwi which comes from the .iwd (main folder of COD),
once converted there should be a .dds file on the desktop once you have done that and installed the plugin and then you may open it with photoshop and you should be able to edit it, if you see a popup saying 32bit etc just click continue or okay.